Debt to Equity
since 2005
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Illinois Tool Works Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Calculation
Illinois Tool Works Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity attributable to ITW1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | = | ÷ | |||
| Dec 31, 2020 | = | ÷ | |||
| Dec 31, 2019 | = | ÷ | |||
| Dec 31, 2018 | = | ÷ | |||
| Dec 31, 2017 | = | ÷ | |||
| Dec 31, 2016 | = | ÷ | |||
| Dec 31, 2015 | = | ÷ | |||
| Dec 31, 2014 | = | ÷ | |||
| Dec 31, 2013 | = | ÷ | |||
| Dec 31, 2012 | = | ÷ | |||
| Dec 31, 2011 | = | ÷ | |||
| Dec 31, 2010 | = | ÷ | |||
| Dec 31, 2009 | = | ÷ | |||
| Dec 31, 2008 | = | ÷ | |||
| Dec 31, 2007 | = | ÷ | |||
| Dec 31, 2006 | = | ÷ | |||
| Dec 31, 2005 | = | ÷ |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The company's total debt demonstrates a clear upward trend from 2005 through 2014, increasing from approximately 1,211 million to a peak near 7,457 million. After this rise, the debt maintains a relatively high level, fluctuating moderately but remaining near the 7,600 to 8,100 million range through 2021. This indicates a pattern of increasing leverage over the years, followed by stabilization at elevated debt levels in the latter years analyzed.
Stockholders' equity attributable to the company initially shows growth, increasing from about 7,547 million in 2005 to a peak near 10,018 million in 2011. However, from 2012 onward, equity declines sharply, reaching a low point near 3,026 million in 2019. There is a slight recovery observed in the equity values after 2019, reaching approximately 3,625 million by 2021, although the equity remains significantly lower than the earlier peak values. This behavior suggests a reduction in net assets available to shareholders during the second half of the period.
The debt to equity ratio remains low and stable in the early years, staying around 0.16 until 2006 and rising slowly to 0.48 by 2008. From 2009 onward, the ratio increases substantially, reaching over 2.0 after 2013. The ratio peaks near 2.56 in 2019 and slightly decreases to approximately 2.12 by 2021. This sharp increase in debt to equity ratio reflects increasing financial leverage, indicating that debt is growing at a faster pace than equity, which may imply a heightened risk profile or changes in capital structure strategy.
- Total Debt
- Uptrend from 1,211 million in 2005 to 7,457 million in 2014; stabilizes at high levels near 7,600–8,100 million through 2021.
- Stockholders’ Equity
- Increases from 7,547 million in 2005 to peak near 10,018 million in 2011; declines sharply thereafter to about 3,026 million in 2019; modest recovery to 3,625 million by 2021.
- Debt to Equity Ratio
- Remains low and stable (~0.16) until 2006; increases markedly post-2008, exceeding 2.0 after 2013; peaks around 2.56 in 2019; decreases slightly to 2.12 by 2021.
Overall, the data reveals a significant transformation in the financial leverage position over the analyzed period, with the company moving from relatively low debt levels and strong equity to a condition characterized by elevated debt and reduced equity. This shift may warrant further examination regarding its impact on financial risk and creditworthiness.
Comparison to Competitors
Illinois Tool Works Inc., debt to equity, long-term trends, comparison to competitors
| Illinois Tool Works Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
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Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Illinois Tool Works Inc., debt to equity, long-term trends, comparison to sector (capital goods)
| Illinois Tool Works Inc. | Capital Goods | |
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Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Illinois Tool Works Inc., debt to equity, long-term trends, comparison to industry (industrials)
| Illinois Tool Works Inc. | Industrials | |
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Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).